[Company analysis] Omron Corporation (オムロン)

「Omron Corporation (オムロン)」 manufactures industrial control equipment including sensors and control technology, as well as systems and electronic components and healthcare products. This company is famous for its unique development power in the industry, and unlike their rival「Keyence」, they manufacture the products in their own factory. The number of consolidated employees is approximately 36,193.

 

1. Company Profile

2. Summary and Features

3. Major Business

4. Financial Information

 

 

 

1. Company Profile

 

※Unit is JPY million, as of 2019

Company name	Omron Corporation
Company name (Japanese)	オムロン
Date of establishment	Monday, May 10, 1948
Headquarters location	〒600-8530 京都府京都市下京区塩小路通堀川東入南不動堂町801
Capital	64,100
Consolidated sales	859,482
Consolidated operating profit	76,633
Consolidated total assets	749,878
Consolidated capital	506,311
Capital adequacy ratio	67.5%
Consolidated number of employees	36,193

 

 

 

2. Summary and Features

 
In 1933, the founder, Tateishi Kazuma(立石一真), developed a high-precision X-ray imaging timer, which was the beginning of「Omron」. After that, they developed the world's first automatic ticket gate (1967) and the world's first ATM machine (1969), and based on their unique development capabilities they continued to expand businesses to the various fields such as control equipment, electronic parts, automatic company electrical parts, social infrastructure, medical care, environment.

The growth strategy of「Omron」is based on the "Niche strategy". In particular, like the invention of the world's first non-contact proximity switch, this company continued to cultivate a niche market that can utilize its unique technology. As a result,「Omron」acheived advantages in industrial automation euquipment. Besdies, this company is well known by general consumers for medical devices such as thermometers, and has the world's top share in the home electronic blood pressure monitor market.

Basically,「Omron」has regional headquarters in Japan, USA, Netherlands, China, Singapore, India and Brazil. Recently this company is actively expanding overseas market, mainly in China. Overseas sales weight exceeds 60%. And the ratio of foreignor employees reaches 70%, indicating that the globalization is progressing.

The biggest competitor of this company is「Keyence」, a major manufacturer of factory automation equipment. Contrary to「Keyence」, which is a typical performance-based company and famous for its harsh culture,「Omron」 is evaluated as having a comfortable working environment because there are few overtime or holiday work. In the case of「Keyence」, the manufacturing process of its own products is outsourced to its subsidiary. But「Omron」is fully in charge of in-house manufacturing and sales.

 

 

 

3. Major Business

 

■ Control equipment business
They manufacture state-of-the-art equipment for factory automation such as centers, controllers and drive equipment.

■ Medical business
They manufacture household medical equipment, health care services, and inspection equipment for medical institutions.

■ Social system business
They handle a variety of equipment, systems and services that support social infrastructure, such as automatic ticket gates, vending machines, and traffic control systems.

■ Environment related equipment solution business
They manufacture energy storage and energy saving related products.

■ Electronic parts business
They manufacture core electronic components such as relays and switches.

 

 

 

4. Financial information

 

※Unit is JPY million

		2016	2017	2018
Consolidated sales		794,201	859,982	859,482
Consolidated operating profit		67,566	85,910	76,633
Consolidated total assets		697,701	744,952	749,878
Consolidated net assets		470,757	507,386	506,311
Breakdown of sales	IAB	336,227	402,864	398,252
	EMC	142,286	162,127	154,238
	AEC	132,562	133,186	130,873
	SSB	66,052	75,562	80,828
	HCB	101,534	108,795	115,665
	Others	78,586	52,226	48,853
	Adjustments	-63,046	-74,778	-69,227